Money sent home by Pakistanis abroad keeps rising. According to data released by the State Bank of Pakistan (SBP) on Wednesday, workers’ remittances reached $3.7bn in August 2026, up 16.5% from a year earlier and 0.7% above July’s level. Combined with the central bank’s rebuilt foreign-exchange (FX) buffers, the inflow marks a sharp reversal for a country that only three years ago had less than $3bn in official reserves.
The first two months of the 2026-27 fiscal year continued last year’s trend. Cumulative receipts for July-August rose by 14.7% to $7.3bn, from $6.4bn in the same period a year before. Saudi Arabia remained the largest source in August, contributing $873.5m, followed by the United Arab Emirates with $749.8m, Britain with $563.7m and America with $308.9m.
Speaking on Friday at the launch of the Pasban Remittances Reward Scheme, SBP Governor Jameel Ahmad set these numbers in a longer context. He recalled that in FY22 the current-account deficit had grown to unsustainable proportions and was draining reserves rapidly. That shortfall, he said, has since been brought to manageable levels. The SBP’s FX holdings, which fell below $3bn in February 2023, now stand at $21.4bn.
The governor stressed that this recovery was not paid for with borrowed money. Unlike in previous episodes, he said, reserves were rebuilt mainly through central-bank purchases of dollars in the market rather than through new external debt. In his view, the improvement reflects real stability and resilience, which could help Pakistan escape its recurring boom-bust cycles and move towards steadier growth.
He reserved particular praise for overseas Pakistanis. Remittances hit a record $41.6bn in FY26, nearly double the $21.7bn received in FY19. He described these funds as the backbone of millions of households: they pay for daily expenses, education and healthcare, and provide capital for investment. He added that the government had offered tax incentives to exporters in this year’s budget, while the SBP had designed long-term financing and performance-based rebate schemes alongside stakeholders.
Pasban itself reflects a change in approach. For years the government ran Home Remittance Incentive Schemes to draw money into formal channels. According to the governor, these schemes deepened the market, brought in more financial institutions, extended Pakistan’s reach at home and abroad, and built the infrastructure to handle larger volumes. As the market matured and their cost rose, officials began a gradual shift towards a self-sustaining, market-oriented model, developed over several months with the Pakistan Banks Association and the wider banking industry.
The governor also highlighted the Roshan Digital Account (RDA), a programme offering banking, payment and investment services to non-resident Pakistanis, including holders of Pakistan Origin Cards. Its scope has been widened to admit foreign investors and Pakistani residents with declared foreign assets. The SBP recently held an awareness session in Britain, and IT companies and freelancers can now open foreign-currency accounts and keep their export earnings in them.
The RDA data, however, show some loss of momentum. Cumulative inflows reached $13.906bn by the end of August, up from $13.647bn a month earlier. August’s intake of $259m was below July’s $282m and June’s $306m, the second consecutive monthly decline. Registrations continued to grow, rising by 9,354 to 966,144 accounts. By the end of August, diaspora investors held $716m in Naya Pakistan Certificates, $1.332bn in their Islamic counterparts and $155m in Roshan Equity Investment.
On the whole, Pakistan’s external position looks healthier than it has for years, and the money sent home by its workers abroad deserves much of the credit. The test for Pasban will be whether formal channels stay attractive once generous state subsidies are withdrawn. The slowing monthly RDA inflows suggest the diaspora’s enthusiasm should not be taken for granted.